Powered by MOMENTUM MEDIA
subscribe to our newsletter

ACCC postpones CDR launch

The competition watchdog has deferred the commencement date for the consumer data right to “allow additional implementation work”.

The Australian Competition and Consumer Commission (ACCC) has updated the timeline for the launch of the consumer data right (CDR) in the banking sector, deferring commencement from February 2020 to July 2020.

As of 1 July 2020, consumers have the power to direct major banks to share their credit and debit card, deposit account and transaction account data with accredited service providers from 1 July 2020.

The CDR regime will then apply to mortgage and personal loan customers from 1 November 2020.

According to the ACCC, the revised timeline would allow for “additional implementation work and testing to be completed” and “better ensure necessary security and privacy protections operate effectively”.

Advertisement
Advertisement

Following the announcement of the new timeline, ACCC commissioner Sarah Court said: “The CDR is a complex but fundamental competition and consumer reform, and we are committed to delivering it only after we are confident the system is resilient, user-friendly and properly tested.

“Robust privacy protection and information security are core features of the CDR, and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”

The ACCC added that it would create the CDR rules in January 2020 to reflect the revised timeline and will conduct further consultation regarding “any consequential changes to other phases of the CDR”.

The CDR regime will be rolled out sector by sector, with banking being followed by energy and telecommunications.

The CDR regime is also designed to increase competition, particularly for more complex products and services, and to allow businesses to make “more tailored offerings” to consumers.

PROMOTED CONTENT


Earlier this month, the Reserve Bank of Australia’s head of financial stability, Jonathan Kearns, noted that better access to data through measures like the CDR regime, open banking and comprehensive credit reporting (CCR) threaten to “eradicate” the competitive advantage held by established banks.  

“The CDR makes it clear that the consumer owns their own data, and open banking provides bank customers with the ability to share their account data with other institutions, including non-banks,” he noted.

“Using these data, a non-bank could, for example, suggest accounts or cards that better suit a customer’s needs or use the information for detailed credit assessment.

“In addition, comprehensive credit reporting will provide [bank and] non-bank lenders with greater information about potential borrowers’ credit history.”

[Related: Data shift threatens to ‘eradicate’ bank advantage: RBA]

ACCC postpones CDR launch
Postpone
mortgagebusiness

Latest News

Australian buy now, pay later giant Afterpay is set to be acquired by a San Francisco payments fintech, in a deal worth approximately $39 bi...

There has been sustained robust growth in home lending driven by strong owner-occupied lending and faster growth in investor housing, accord...

The prudential regulator has launched a week-long consultation on its regulatory approach for banks offering temporary financial assistance ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.